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    Expert's Opinion

    How Beauty Brands Can Embrace Customer-Centric Innovation

    Working with a 3PL who understands the importance of brand representation can be key.

    How Beauty Brands Can Embrace Customer-Centric Innovation
    Kamran Iqbal.
    Kamran Iqbal, Commerce Strategist, PFS03.02.23
    For beauty brands, there are a lot of channels of engagement with customers, but the importance of a seamless post-purchase experience for brands selling online cannot be overstated. Starting with the brand message, all the way through to last-mile delivery, a loyalty-inspiring customer experience should be at the center of any strategy.
     
    With this in mind, it’s essential that brands take a holistic approach to marketing goals and operational plans. Understanding the importance of customer obsession throughout the operations side of the business can help brands realize the power of long-term loyalty.

    Beauty is in the Eye of the Customer

    Consumers are willing to spend when it comes to their beauty products and they don’t want to give up the little luxuries, even in this uncertain economy. Call it the “lipstick effect”—when people buy more makeup to make themselves feel good when times get tough.

    The prestige beauty sector, including high-end skincare products, cosmetics and fragrances, had a banner year in 2022, jumping 15% overall. In fact, prestige beauty was the fastest-growing industry segment, reaching $27.1 billion last year. 
     
    According to the NPD Group, which tracks consumer spending, the emotional connection customers have with their beauty brands will drive the industry’s resiliency in 2023. Brands understand the power of this emotional connection and will continue to spend a significant amount of money on capturing and nurturing those customer relationships.

    So, why is a holistic approach key here? The back-office operations must deliver on the expectations set by a stellar on-site experience. Every step of the way, you’re striving to reinforce a positive brand image and create that perfect customer experience. Working with experienced partners, including third-party logistics companies (3PLs), that have a proven track record of seamlessly delivering on customer expectations and, critically, doing so at scale, can make all the difference.

    Carrying Brand Messaging Far and Wide

    Brands need a cohesive, customer-centric approach across channels, including brand messaging. Post-click operations should seamlessly deliver on your brand message with strong alignment between marketing and operational components in support of for frictionless execution.

    Brands should diversify their reach when it comes to brand messaging. Industry watchers say that after years of being shaped by influencers, there’s been a shift away from this once novel approach. For example, Morphe Cosmetics bet big on influencers as part of its marketing strategy. When the company announced it would close all of its U.S. stores, that added to speculation that social media stars have over-saturated the market.

    The bottom line is that social media is just one tool in the toolbox. Beauty brands always want to cultivate many channels of customer acquisition and retention. By seeing every step of the customer journey as equally important, brands will protect their own image and retain that all-important customer loyalty.

    Personal Touches Matter

    Technology can help brands continue the luxury experience for their customers. Artificial Intelligence (AI) and other technology are impacting the way brands interact with customers. When you can't touch and feel it, a virtual ‘try on’ is the next best thing. Lancome Paris, Yves Saint Laurent and other high-end beauty brands offer virtual consultations and have leveraged AI and other technology to allow customers to ‘try on’ products or receive a personalized product recommendation. Beauty-focused tech can make customers feel more comfortable purchasing beauty products online.

    After the sale is made, customers still want an experience that is tailored to their needs. For instance, luxury customers who are accustomed to a “boutique” in-store experience have similar expectations when shopping online, extending through to the unboxing experience. If you receive a nice bag with your purchase in the store, why not get the same luxury experience when your package arrives at home? This is an important component of brand representation.

    Our own research shows that 42% of consumers believe that they receive a more personalized experience online than in-store. Product personalization such as engraving or monogramming is another way to create the sought-after emotional connection between consumer and brand.

    It’s important to focus on ensuring a certain standard from beginning to end to capture loyalty. Working with a 3PL who prioritizes brand representation and positive customer experiences in this way can be a valuable solution to guarantee consistency and encourage growth.

    Omnichannel Customer Journey

    Beauty brands want to be able to communicate with customers and guide them through the shopping experience across multiple channels. This provides consumers with a consistent experience from brand messaging to product fulfillment.

    A brand’s back-office operations are mission-critical to making good on the promises they make to their customers. Every aspect of inventory planning, order fulfillment and reverse logistics needs to work seamlessly with the central focus of creating a positive customer experience.

    Working with a 3PL who understands the importance of brand representation will ensure that your message is communicated across the supply chain. Delivering the right items on time with a great unboxing experience can make all the difference. The right 3PL can help you do this.  

    About the Author

    Kamran Iqbal is the Senior Sales Director & Commerce Strategist for PFS.
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